Reimburse a customer
Consider the following information when you work with the reimbursement feature:
- You can use the feature to repay customers who have credit amounts because of overpayment or credit notes.
- The feature transfers the balance to a vendor account. The vendor account is assigned on the Customer page; otherwise, a one-time vendor account is created automatically.
- The Accounts Payable Coordinator can create an ordinary payment when the balance amount transfers to a vendor account.
Consider an alternative option, where you would use the Accounts receivable payment journal and debit the customer for the value of refund, generate payment, and then post.
This video uses Contoso demo data to explain how to create reimbursement transactions for a customer. If a customer has a credit balance, you can reimburse them for the balance. Through the video demonstration, you learn how to create a reimbursement transaction for a customer and how to connect a vendor account to a customer account for the reimbursement process.
For more information, refer to Reimburse customers.